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The graph includes state, federal, and payroll tax. They're stacked above the income after tax. They do not add up to $41,535.
by endominus 4y ago
The graph includes state, federal, and payroll tax. They're stacked above the income after tax. They do not add up to $41,535.
- mort96 4y agoI ignored the payroll tax, because I assumed that's not counted as part of the employee's gross income? And I agree that neither income tax nor income + payroll tax adds up to the 33.5%. I don't know if there are more taxes which need to be considered. 13% total tax seems low.
- dragonwriter 4y ago> I ignored the payroll tax, because I assumed that's not counted as part of the employee's gross income Employee share of payroll tax is, employer share (which is shown reaching down from the bottom) is not. > 13% total tax seems low. Given what I've actually paid with a far above median income, 13% soubds reasonable. Its low as a nominal rate, but there are lots of credits and deductions available, and the before-tax median personal income is well below the cutoff for EITC, which can be a huge one. Heck, a large minority of the population pays zero or negative net income tax.